3D TV Forecast to Reach 3.2 Million Global Shipments in 2010 and 91 Million in 2014

SANTA CLARA, CALIF., January 4, 2011The availability
of 3D content will remain the greatest determinant of the value of
3D TVs to consumers and as a result its achievable premium in
TV sets. 3D TVs were launched with much fanfare at
IFA 2009, but a year ago at CES, the first real products
reached the market. Since then, shipments have made steady,
although slightly disappointing, progress. Global shipments in 2010
were expected to total 3.2 million worldwide, according to the
DisplaySearch
Quarterly TV Design and Features Report.

TV manufacturers really got ahead of themselves in 2010, and
they forgot that a TV is a tool to watch content, said Paul Gray,
Director of TV Electronics Research at DisplaySearch. People will
only buy a 3D TV if there is enough content to watch, and in
2010, there simply was not enough 3D content available. As a
result, only 4% of TVs 40 and larger had 3D capabilities.

Despite this, competitive pressures in the industry are rapidly
making 3D a compulsory feature. DisplaySearch forecasts that
nearly18 million 3D sets will be shipped in 2011, rising to
over 91 million in 2014.

TV set makers are strongly committed to 3D, and they expect
their strong lead to encourage content creators to follow, Gray
added. Weakness in the North American TV market was largely to
blame for slow 3D shipments, although our research shows that only
40 3D Blu-ray disc titles were available across all genres at the
end of 2010.

The DisplaySearch
Quarterly TV Design and Features Report also examines
systems with 3D passive glasses, which launched in China in
December 2010 and are expected to be featured at CES. These
are being offered as an alternative to the existing shutter glasses
types, which have significant drawbacks, including high costs,
weight, the need for re-charging, and limited interoperability.

What is disturbing, though, is the prospect of a format war,
said Gray. It would be very damaging and consumers would opt to
wait if they sense obsolescence, especially when they are already
cautious about spending.

Other key findings from the Q4 report include:

In the global broadcast environment, South African countries
have opted to jump straight to the latest DVB-T2 broadcast
standard. DisplaySearch forecasts that almost 20 million TV
sets will ship with DVB-T2 decoding in 2015.

21% of all TVs shipped in 2010 are forecast to have internet
connectivity. This category is forecast to grow to over
122 million in 2014, with emerging markets providing a
significant portion of the growth as broadband adoption
surges.

TV set makers are addressing the new opportunities in emerging
markets for flat panel TVs, with TV products being launched that
are customized to consumers in these regions. Low power
consumption, resilience to electricity supply failure, robust
reception, and different local preferences are being actualized in
new TV models.

The DisplaySearch
Quarterly TV Design and Features Report is a quarterly
update of the rapid shifts in TV feature development. The 200+ page
report examines and forecasts video processor and signal processing
IC market development, including 120/100 and 200/240 Hz frame
rates and market shares for major IC vendors. In addition, the
report features forecasting for MPEG-4 decoding and the digital
broadcast environment around the world, including a forecast for
DVB-T2; TV connectivity, such as wired and wireless networked TVs;
LED backlighting; 3D capability and implementation; remote controls
and chassis design; and power consumption. The report also outlines
national digital broadcast timetables for 91 countries, and
forecasts the shipment of TV sets by digital broadcast standard or
connected TV by region.